Towing company owner admits mail, tax fraud

The owner of a Chicago towing company pleaded guilty in federal court today for his part in a scheme with two Chicago police officers to bilk insurance companies with false stolen-vehicle claims.

Wearing a black button-down shirt and slacks, James "Meatball" Athans, 40, pleaded guilty to two counts of mail fraud and one count of tax fraud before U.S. District Judge Harry D. Leinenweber.

In a plea agreement read before the court, Athans, owner of Collision Towing, admitted to conspiring with several other defendants, including Chicago Police Officers Joseph Grillo and Scott Campbell, to help make cars disappear so that their owners could file false claims with their insurance companies.

Athans admitted that he had Campbell's car towed and then sold for parts. Campbell then filed a false police report saying his car was stolen and later received a check for $4,000 from State Farm Insurance. Last month, Campbell pleaded guilty to one count of filing a false tax return and Grillo pleaded guilty to one count of mail fraud. Neither has been sentenced yet.

Athans also admitted to helping another undisclosed individual make a Lincoln car disappear so the owner could file a false claim for more than $8,000 with Allstate Insurance Co. Athans also admitted to leaving almost $70,000 in income off his tax return from cars he seized and resold as part of his towing business.

Athans is scheduled to be sentenced Aug. 27 and faces up to 18 months in prison under federal sentencing guidelines, according to the plea agreement.